The cryptocurrency market faced correction, with leading assets declining, ahead of the release of the U.S. inflation data.
The U.S. Consumer Price Index (CPI) report for June this year is expected to be released today at 08:30 ET (12:30 UTC). According to Investing.com analyst Jesse Cohen, the majority of the U.S. banks and investment firms expect a soft decrease in the country’s inflation rate — between 3% and 3.2%.
On the other hand, the investment banking company Morgan Stanley estimates the June CPI to reach 3.5% year-over-year (YoY), per Cohen’s X post.
If the inflation rate for June comes down to around 3.1%, the analyst says that it will increase the chances of a Fed rate cut in September. Cohen added in the X thread:
“Anything above 3.5% and you can forget about rate cuts in 2024.”
The inflation rate dropped from 3.4% in April to 3.3% in May, crypto.news reported. Notably, this is the lowest level seen since April 2021. Consequently, the crypto market witnessed a market-wide rebound with Bitcoin (BTC) surpassing the $69,000 mark on June 12, the day the inflation report was released.
Historically, the cryptocurrency scene has usually been facing bearish corrections ahead of the CPI report. Nonetheless, it happened again.
The global crypto market cap declined 1% over the past 24 hours and is sitting at $2.24 trillion at the reporting time. Bitcoin slipped 2% and is hovering around $57,900.
A decline in the U.S. inflation report can potentially hint at a market-wide bullish momentum for the crypto sector and vice versa.
